Register
Login:
Share:
Email Facebook Twitter

CHAR Share Chat - RSS Feed

Chariot Oil Share Chat (CHAR)



Share Price: 10.00Bid: 10.00Ask: 10.25Change: -0.50 (-4.76%)Faller - Chariot Oil
Spread: 0.25Spread as %: 2.50%Open: 10.50High: 10.50Low: 9.75Yesterday’s Close: 10.50


Share Discussion for Chariot Oil (CHAR)


Thread ViewThread View
Please Login or Register to post messages
Posts per page:


Pegasusmarine
Posts: 651
Off Topic
Opinion:Strong Buy
Price:14.75
View Thread (2)
PM
24 Sep '14
We are where we are. I agree 100% with you about investor fatigue. There are companies out there with better market capitalisations, less cash, debt, fewer prospects and boards that are not as strong as chariots. The weak link is PR and the fact that Larry seems shy in communicating with us except when he puts us in a sh** position like the recent placing The likes of Forlorn on iii and ADVFN (look up his profile picture on advfn) love to chip away at Peoples anxieties and as a speculator why would you invest here with all the continuous *****ing? When we were at 29p there was at long last some recognition I the value being created in our acreage then we got screwed over by sentiment again. Chariot will farm out the Centrals - they are in talks right now. Morocco will get a tier 2 via chariots former chairman at wood side. Mauritania will hold the new venture with Cairn ... Watch this space ..
 
DrillaHill
Posts: 34
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (3)
RE: Namibia
24 Sep '14
pm,

the farmout by PCL to Tullow is the last one of my list,

Tullow "pay" for 30% of US$135MM to PCL for 30% Seismic and 30% of an optional drill,
130 *0.3=39,

which values 100% of the Blocks at ~US$60MM ("FarmoutValue" 39/65~100)

actually the farmout value was higher because of Tullow paying for the 65% back costs as well,
The Tullow farmout is the last one on my list
preciousmaj
Posts: 64
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (2)
RE: Investor fatigue
24 Sep '14
The new venture doesn’t excite me at the moment to be honest. We need to have a Tier-2 farm out and have a clear time line to drill. After that the idea of increasing acreage in a country that we are currently operating in would seem more appealing as it will most likely increase the value and interest in the current acreage. I hope the deal for the new venture is announced after a Tier-2 farm out. If it is reported now it will reduce the share price further as the market is tracking the company’s cash value, the spend in the new venture will get factored in straight away.

GLA
preciousmaj
Posts: 64
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (2)
Investor fatigue
24 Sep '14
We have waited a year for the central’s farm out and nothing has come to fruition, according to the company the removal of the drilling commitment puts Chariot in a stronger negotiating position and gives it further commercial optionality. This may be correct but the fact is we have also lost 25% equity, which has cost shareholders millions. The BOD’s have definitely made errors in judgement when trying to farm out the centrals, we were told of the high industry interest in the block and the region as a whole yet nothing came of it.

The Mauritania data has been expected for months and has now been delayed once again to 2015. We have had our shareholding diluted and the share price is at all-time lows, Mr. Market is usually correct and he doesn't think very highly of the company's future at the moment given its track record. Our 2 biggest partners BP and PetroBras have also relinquished block 2714a.

Investor fatigue is to be expected especially when there are no signs of improvement just hype and conjecture. Personally, the performance of the stock has caused me a lot of problems but I will continue to hold as selling at a loss after such a long time would be unwise as the BOD's have a lot to prove and the prospects on the face of it look very good. We have diversified in to other regions and the Tier-1 farm outs seem reasonably good value with options for Tier-2 farm outs.

It's disappointing when I see shareholders of other companies having a more proactive approach and all we see on this bulletin board is a ''wait and see'' attitude. Just take RRL as an example, the shareholders feel that communication from the company is unacceptable and are demanding this be corrected.

What we have seen over the last 2 years with CHAR has been completely unacceptable and I have raised this with the company several times but I feel like I am the only one with these concerns. The channels that are currently open to CHAR shareholders to contact the company are not sufficient in my opinion but these will only change if a much larger investor base requests the change. Attending AGM’s in such low numbers is frivolous IMO. A much better way would be to create an action group and speak with one voice – However I think this would be a non-starter as we just do not have the numbers.

The company has made promises and is talking a good game but if it doesn’t succeed in the Tier-2 farm outs and commit to drilling then the market will continue to hold it down. There is not much interest in the shares and the volumes are too low to move the share price currently.

cont....
preciousmaj
Posts: 64
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (3)
RE: Namibia
24 Sep '14
DrillaHill,

Based on your calculations - 30% equity could be worth around $38m, based on these numbers 25% equity would be around $31.75m, which is really close to the figure I quoted of $32.5m that we have lost due to the equity changes.
Pegasusmarine
Posts: 651
Off Topic
Opinion:Strong Buy
Price:14.75
View Thread (2)
With cash and cash due
24 Sep '14
And debt free we are sitting below cash - how crazy is that. I am Glad we have more II's on board to add some stability. As for the Centrals farm out - another option could be Chariot believe what they have is worth more in farm out terms and that is why they are negotiating for longer - after all - it's drill ready and now no more acreage available unless via farm-in. I think Namcor have now sent a strong message - from now on - use it or lose it .. In other words drill. Mulunga saying three drills next year is a good sign - he was proven right on all other occasions (more oilers OMV,Murphy, SHELL) also (BP/Petribras not renewing) he also reckons BP will stay in Namibia - they have no choice but to farm in ..
DrillaHill
Posts: 34
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (3)
Namibia
24 Sep '14
Based on earlier farmout activity
I expect potential farminees to pay (at least) about:

+~US$6,000/ km² acreage
+ ~US$7,400/ km² 3D seismic

Examples of what farminees have paid
to farm into Blocks offshore Namibia the last couple of years:

BP Namibia Block
25% of 2714A
(5,480km²)
~US$30MM
US$1.2MM per 1% of one Block,
US$21,897 per 1km²

Galp Energia Namibia Blocks
14% of 2112B, 2212A, 2713A, 2713B, 2813A, 2814B, 2914A
(37,744km²)
~US$60MM
US$0.61MM per 1% of one Block,
US$11,355 per 1km²

SHELL Namibia Blocks
90% of 2913A, 2914B
(~10,000km²)
~US$54MM
US$0.3MM per 1% of one Block,
US$ 6,000 per 1km²

PGS Namibia Blocks
10% of 2312A, 2312B, 2412A, 2412B
(16,800km²)
~US$10MM
US$0.33MM per 1% of one Block,
US$5,952 per 1km²

PetroBras Namibia Block
50% of 2714A
(5,480km²)
~US$16MM
US$0.32MM per 1% of one Block,
US$5,840 per 1km²

Tullow Oil Namibia Blocks
65% of 1910A, 1911A, 2011A
(17,295km²)
~US$52MM
US$0.27MM per 1% of one Block,
US$4,626 per 1km²

One reason the values paid differ from eachother is because some companies have already acquired & interpreted expensive 3D data before farming out, while others have not. For example HRT has acquired and interpreted ~10,000km² of 3D seismic with estimated costs of > US$70MM. Another reason is of course the amount of prospective resources and their chance of success. As an example BP paid a huge premium, four times as much as others to farm into Block 2714A, the reason was the Nimrod prospect (prospective resources ~ 5 bn boe), unfortunately turned out as an non commercial well, but proved source rocks capable to fill shallower reservoirs, afterwards Chariot was able to secure the license to the south from 2714A and is now targeting such shallower reservoirs ...

Namibia Central Blocks:
2312A&B & 2412A&B: 65% (Operator), 16,800km², 3,500km² 3D

Potential Farmout Value (100%):
US$6,000*16,800km² = US$101MM & (3,500km²) 3D ~US$26MM = US$127MM

So I expect Chariot to farmout ~30% of their Central Blocks
For ~US$38MM or a free carried well (35%) and more 3D Seismic.
preciousmaj
Posts: 64
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (8)
RE: No more Namibia licenses
24 Sep '14
DrillaHill,

We were told of the high industry interest in the centrals and the region as a whole yet nothing came of it. We shouldn't have been in a position where we needed to renew the licence or relinquish it. As a matter of fact we did relinquish the licence and were then re-awarded this but at reduced equity. AziNam went from 10% equity before to 20% equity now.

My calculation is much simpler than yours - 25% of $130m is $32.5m.

We are in a much better position in terms of data and expertise than Pancontinental as well.
DrillaHill
Posts: 34
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (8)
RE: No more Namibia licenses
24 Sep '14
pm,

sorry, you are correct it is a new license,
but still, with new timelines the licenses looks far more attractive to farm in..

The Central decrease was the price to get the 65% of the new license,
other companies must face similar issues. Better that losing the entire license..

Brazil is by far less acreage and less prospects,
3D is much more expensive,
still I believe Chariot can get a free carried drill,
retaining 20 to 25%.

Pancontinentals farmout of 65% was for a free carry of up to US$130MM of total expenditure,
so for PCL's interest (30%) it was worth US$130MM*0.3= US$39MM

US$39MM/ 65 = US$600k/1%
so 25% worth US$15MM...
preciousmaj
Posts: 64
Off Topic
Opinion:No Opinion
Price:14.75
View Thread (8)
RE: No more Namibia licenses
24 Sep '14
DrillaHill,

The licence was not renewed in August. Chariot was awarded a new licence, which resulted in a 25% reduced equity. Of course Chariot could not renew the existing licence because it would take us in to the drilling phase and we cannot drill without a partner. There was ample time from September 2013 to August 2014 to farm out especially with such ''high industry interest''.

Our equity in the Namibian centrals has decreased from 90% to 65% - our recent Brazilian farm out to AziLat netted us $7.5m for 25% equity. The difference is that the centrals are drill ready with third party validation from the HRT well. Last year Tullow farmed in to Pancontinental's Namibia acreage, the farmin expenditure is potentially up to US$130 million. We have potentially lost circa $32.5m by loosing the 25% equity.



Share Trading BrochureRequest your Free brochures on share dealing, spread betting and CFDs

Sign up for Live Prices
Home  |  Contact Us  |  About Us  |  Careers  |  Advertise with Us  |  Sitemap  |  Terms & Conditions  |  Cookies  |  Privacy


Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.